My clients and friends keep asking me if the market is slowing down.
The answer is...yes and no.
Being a regional company with offices from the Portland area to a Bellingham is great because we get regional market updates that help us anticipate market shifts.
In this morning’s meeting, our CEO, Mike Grady, said, “We are still a long way from being a balanced market. We are still leaning towards being a seller's market over a buyer's market.”
A balanced market is one that doesn’t favor buyers or sellers, and has about 5-6 months of inventory.
In June we had 1.9 months of inventory, in August we had 2.3, and in September it was up to 2.9. By the end of the year we anticipate 3.5 months of inventory. So... inventory is creeping up giving buyers more options.
I’m personally competing against fewer offers when representing buyers lately. But I’m not sure we’re headed for a significant market correction.
A big influencer is that the economy is strong. Washington state is adding about 10,000 jobs per month. And only 3,000-4,000 building permits are being issued per month. The demand for housing is still there.
Will it be as hot of a market as early 2018? Maybe not. According to Grady, “In Portland and Seattle and the entire I-5 corridor, we anticipate that it will be mostly the same kind of market through the end of 2018 and throughout 2019. Right now there’s no logical reason to believe we won’t lean more towards a seller's market for the next 18 months or so.”